How will the demand for station-based model fuel bike sharing market trends?
Bike sharing market size is gaining immense momentum due to increasing environmental and health concerns across the world. Bike sharing system helps in reducing the usage of automobiles for environment purposes which leads to lower traffic congestion and makes urban areas easier to navigate. With new advancements in these technologies, service providers are providing bicycles with GPS navigation systems and helping commuters in finding destinations with ease. Seeing the proliferating demand and changing consumer preferences, venture capitalists are making hefty investments in bike sharing startups to augment their business operation. Such trends will boost the adoption of bike sharing services and provide commuters with a convenient and time-saving travel mode.
How does rising demand for conventional bikes propel bike sharing industry trends?
The demand for conventional bikes is proliferating day by day owing to their low maintenance costs and longer life in terms of time and distance. With the propagation of consumer-ready mobile payments, GPS technology, IoT, and AI, service providers are making huge investments for the implementation of these technologies in conventional bikes. These services have begun gaining traction in Asia Pacific and Latin America countries including China, India, and Brazil due to the rising congestion and fuel consumption along with the unavailability of infrastructure and large investments for the adoption of e-bikes. Companies and startups are offering lucrative discounts to customers for capturing a significant share in the market and also adding multi-gear technology in the vehicles so that a commuter can change the riding speed as per the terrain, increasing their comfort level and riding proficiency. Similar moves by numerous service providers and companies will positively impact bike sharing market trends.
Is the station-based service segment gaining traction across global bike sharing market?
Over the past few years, station-based bike sharing system has become a notable tech trend and introduced to many cities globally, encouraging more bicycles and promoting healthy environment. Companies are consistently working towards installing various novel sharing stations at different public locations to expand their footprint and provide customers bikes at convenient locations. Service providers are enhancing the utility of station-based bike-sharing systems which would help in reducing congestion and play a vital role in urban sustainability and green mobility. In August 2018, Divvy Bikes had announced the installation of 30 new stations in the Chicago area including Englewood, River North, and Ukrainian Village. Furthermore, these station-based model solves the major concerns like loss from theft or vandalism and provide better security options. Since the launch of bike sharing systems, the station-based service segment has experienced explosive growth due to considerable flexibility and affordability.
Will North America emerge as a major contender for bike sharing industry share?
Owing to transport flexibility and growing demand for e-bike sharing services in the U.S., service providers are promoting e-bikes over traditional bikes as these bikes help in improving multimodal transport connections and reduced congestion and fuel use.
North America bike sharing market size is slated to witness a notable growth at 10% CAGR by 2025.
In June 2019, Madison BCycle had announced the replacement of its conventional bikes over e-bikes in the U.S. and it had been observed that working professionals in various cities including Chicago and New York had opted these e-bikes in large number. According to the National Association of City Transportation Officials (NACTO) around 35 million shared trips were engaged in the U.S. in 2017 that is nearly 25% more than in 2016. Such rising trends in terms of user demand and system availability will positively boost global bike sharing industry outlook.